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It was exciting when that cash offer came in on your property because it means you don't have to wait and hope that the buyer can get approved for a loan. In theory, your buyer hands you the money, you hand over the keys and everybody wins. In reality, however, before you start counting the money on the way to the bank, remember that even with a cash sale there are some finishing touches required and some of them could be your financial responsibility.

Show Me the Money

Depending on the state, county and city where the property is located, there will be various things that you as the seller are expected to pay for, even with a cash sale. In San Francisco, for example, you will need to pay a transfer tax to both the city and the county. If you had an agent involved in listing and selling your property, you are expected to pay the agent's commission out of your profits. If you did a for sale by owner, there won't be a listing agent commission due. Is there a homeowners association that oversees your property? If so, you are expected to bring current all fees and pro-rated fees until the date of closing. If your state or county imposes water or energy conservation fees to be paid during a property sale, this will typically be your responsibility as well. Obviously, you will be expected to be current on your property taxes. This means at the date of sale you will be expected to fund any pro-rated taxes due until that date. Typically, you and the buyer share in the cost of all escrow account fees.

Why Would You Pay for Anything Else?

If someone has enough cash to buy your property, it seems that person would also have enough to pay for things like inspections and appraisals if he wanted them done – though they are not required in a cash transaction. And because you are the one with the property this buyer wants, it would appear you hold all the cards. Why would you agree to or offer to pay for any of the costs of closing outside of the customary amounts? Depending on where you live, meaning the state of the market, such an offer could be used as an enticement. Let's say yours is not the only property the buyer is checking out. You know how much you like the idea of a hassle-free cash transaction? So do the other sellers, therefore, if your property is located in an area considered a buyers' market, you might want to tip the scales in your favor by offering to handle some of the miscellaneous closing costs.

Things You Might Want to Offer

Almost all things are negotiable in a cash sale. These are only suggestions on some things you can offer to pay for that might help the buyer choose your property over others.

Appraisals are required by mortgage companies, therefore, no mortgage means mean no forced appraisal. Offering to pay for one lets the buyer know you are willing to put the money up to show him that your property is worth what you are asking for it. The same goes for a property inspection – it isn't required but paying for one, perhaps even prior to listing the property, gives you tangible information to provide the cash buyer. A title search is typically required for any sale, cash or otherwise. You don't have to pay for it, but it will sweeten the pot for the buyer if you take some of these costs off the top.

You and your buyer can hammer out the details of who will pick up the cost of each needed closing item. Keep your bottom line in mind and remember to deduct each expense from your net profit to decide what you are willing to pay to get the sale finished.

About the Author

Candace has been writing professionally since 1989, with real estate being a favorite niche of hers. Whether it is exploring better ways to find a mortgage, stage a home, or get creative in buying and selling, she is up to the challenge of mastering it and writing about it. Sheis also very comfortable writing about all topics regarding rental property as well a commercial and insurance interests.